Trade Alert

Trade Update - DR Horton

_{Posted by Club Member Sammy Theeee 21.7.23}

Sold the position at $126.85.

DR Horton handily beat Wall St estimates for earnings when it posted its quarterly results on Thursday. Management also raised guidance for full-year revenue to $34.7B to $35.1B, up from $31.5B to $33.0B.

So overall, a very strong earnings report, and in line with my original investment thesis, which was predicated on the low supply of affordable housing stock providing support for construction demand (see previous post for more context).

The stock popped 3%-4% at the market open, before quickly turning negative 3%-4% around mid-day, the stock recovered somewhat after but still ended the session down 1.9%.

"Good news, bad price action"!! This is usually a sign that the markets have digested the opportunity around this trade and are now taking profits. So, time to get out.

Was hoping for a larger gain from this trade. But a 5.1% return from a position held for less than a month isn’t too bad.

Moving on.

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